Saab gets funding boost

Saab has received a large order for cars that should give it the short-term cash boost it urgently needs.

An unnamed Chinese company has placed an order for 582 Saab vehicles worth £13m Euros (around £11.5m). It is expected to pay for them this week.

Last week Saab announced that it couldn’t afford to pay the wages of its staff in Sweden, prompting reports that the firm might have to declare itself bankrupt. Saab says it can now afford to pay its employees and also make partial supplier payments. Production at Saab’s Trolhattan factory is on hold, because Saab doesn’t have the cash to buy parts.

Victor Mueller, CEO of Saab Automobile, said: 'We very much regret the current cash shortage which is causing undeserved hardship to all and we are working relentlessly to resolve the situation.

'We hope to secure additional short-term funding, which is necessary to reach agreement with all of our suppliers and restart production, soon. '

Vladimir Antonov, a Russian banker, has stated his interest in buying a stake in Saab, but a decision on his involvement hasn’t yet been approved. Saab is also hoping to raise funds through the sale and lease-back of its property.